D&aacute;il &Eacute;ireann

Incentivise farm partnerships and greater productivity at farm level

One of the most significant new measures introduced in Budget 2012 is the new stock relief incentive to encourage farm partnerships. For registered farm partnerships, the current rate of 25% stock relief will increase to 50%, and, for certain young trained farmers entering such partnerships, a rate of 100% stock relief will be available. This new incentive will run until December 2015. I believe that this measure will encourage active farmers to look at new ways of collaborating to improve quality and output.

I am supporting farm partnerships because I believe that it will bring more innovative and energetic young prospective farmers into farming. More farming partnerships are required to increase productivity and meet the Food Harvest 2020 targets.

Encouraging farm partnerships will also support the dairy herd expansion required over the coming years, enabling Irish farmers to avail of the opportunity presented by the abolition of EU milk quotas in March 2015. Another measure that will benefit active farmers is the reduction in the stamp duty rate on agricultural land from 6% to 2%, with immediate effect. In addition, half the rate (1%) will be applicable on transfers to close relatives until the end of 2014.

This change will substantially reduce the stamp duty payable on transfers of farm land by gift or by sale. It should stimulate a stagnant land market — currently only 0.5% of total agricultural land is offered for sale annually — and ensure that land transfers to more active producers. It will also promote inter-generational transfer, as the cost of lifetime transfer to transferees who do not qualify for the young trained farmer stamp duty relief has reduced considerably.

I am confident that this measure will give younger, progressive, commercial farmers a greater opportunity to purchase land and thereby increase their farm size, which will make the farm more competitive. Budget 2012 has also restructured the retirement relief available on Capital Gains Tax in order to incentivise the earlier transfer of farm assets to the next generation, and to encourage the sale of land by those farmers with no successors. As of 1st January 2014, for those farmers aged 66 and over, an upper limit of €3m will be introduced on family transfers, compared to an unlimited amount currently. On non-family transfers, the current upper limit of €750,000 will be reduced to €500,000. Applying the new limits from 1st January 2014 allows farmers already aged 66 and over to plan the orderly transfer of assets in advance of that date.

It is important to remember that these new measures do not mean that a farmer has to cease farming altogether beyond the age of 66, but it allows them to plan for a phased gradual transfer of assets to the next generation.

We are restructuring retirement relief in order to encourage farmers around the normal retirement age, who have successors, to transfer their land and holdings to young, innovative, ambitious, prospective farmers. This restructuring will also encourage farmers with no successors to sell some of their land before normal retirement age. This measure will encourage an improvement in the age profile of farmers, and should ensure that farmland is put to more productive use.

22. Deputy Marcella Corcoran Kennedy asked the Minister for Agriculture, Food and the Marine the effect the changes outlined in budget 2012 will have on beef farmers; and if he will make a statement on the matter. [38940/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): There were a number of changes in the recent budget which will have an impact on beef farmers and which also will support the Food Harvest 2020 objectives, contributing to jobs and growth in the sector. While it was of course necessary to reduce public expenditure overall I have been able to continue with important measures for suckler farmers, for those in disadvantaged areas and to introduce a new Beef Technology Adoption Programme.

The Suckler Cow Welfare Scheme will continue to be fully funded from national funds. In particular, despite the financial constraints faced, I will continue to provide the necessary funding to meet all payments due in 2012 at the current rates.

For farmers benefitting under the Disadvantaged Areas Scheme, there will be no changes in either the rates or the maximum eligible areas qualifying for payment despite the fact that expenditure will be reduced by some €30 million in 2012. This lower financial limit will be achieved by the introduction of targeted reform in the Disadvantaged Areas Payments, which will be achieved through changes to the stocking density minimum requirements, retention period and other elements of the scheme. The changes being introduced will focus the level of funding available on active farmers, who are making a valuable contribution to the rural economy.

I have allocated €5m towards the establishment of a Beef Technology Adoption Programme which will build on the work done to date under the Better Farm Programme. The roll-out of the Beef Discussion Groups will give beef farmers access to a range of additional skills to increase productivity. This programme was a key recommendation of the Beef 2020 Activation Group.

The taxation measures announced in Budget 2012 reflect this Government’s commitment to the agri-food industry and in particular to the expansion planned in the Food Harvest 2020 strategy. As the tax measures announced have been designed specifically to encourage farming as a career for young people and to incentivise farm partnerships and greater productivity at farm level, I feel confident that they will be of great benefit to active farmers, including those in the beef sector.

The main measures in the Budget which will benefit the agri-food sector are as follows:

a stock relief incentive to encourage Farm Partnerships;

reduction in the stamp duty rate on agricultural land from 6% to 2%, so as to stimulate land sales and land transfers;

restructuring of Capital Gains Tax retirement relief so as to encourage inter-generational transfer.

I am satisfied that these measures will help to address, in a strategic way, the issues relating to land mobility and consolidation and will help to bring new blood into farming including beef farming.

23. Deputy Aodhán Ó Ríordáin asked the Minister for Agriculture, Food and the Marine if he intends to investigate the current funding criteria for the horse and greyhound industry, taking into account that under the Horse and Greyhound Act 2001, the horse and greyhound fund received €57 million this year and the Irish Sports Council received €25.6 million for 2011; if he will reassess this situation in the interest of equity; and if he will make a statement on the matter. [39223/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Under Section 12 of the Horse and Greyhound Racing Act, 2001(No. 20 of 2001), the horse and greyhound racing industries receive financial support from the State through the Horse and Greyhound Racing Fund (the Fund). State funding provided through the Fund is pivotal to the survival of the horse and greyhound racing industries.

The funding provided to both Horse Racing Ireland and Bord na gCon supports these two very important industries and helps to sustain the important role of horse and greyhound breeding and training enterprises in the development of the rural economy. There are a total of 26 horse racing tracks and 17 greyhound racing tracks spread right across the country, owners and breeders are similarly distributed throughout the country. These industries generate very substantial economic activity and make a vital contribution to the rural economy, including farm incomes, and also to the social and cultural fabric of the nation. These are industries in which we as a nation excel.

The funding mechanism, which was established under the Horse and Greyhound Racing Act 2001 Act, has proven not to be satisfactory insofar as it has required an increasing level of Exchequer funding, over the years, due to successive cuts in betting duty coupled with an increasing amount of betting activity migrating to tax free platforms. It is against this background that the Government recently decided to proceed with legislation to amend the Betting Act 1931. This will provide for the extension of the betting duty regime to remote betting. It is the Government’s intention that this legislation will be introduced in the first quarter of 2012.

I announced earlier in the week that I will shortly be commissioning an external review of the structures and legislation governing the industry. The 1994 Irish Horseracing Act and the 2001 Horse and Greyhound Racing Act achieved structural reform but I believe the reform now needs to be completed to ensure that governance and administrative procedures are modernised and fully effective in supporting a world-class industry. In taking this action I am acutely aware of the huge effort and commitment given by so many in bringing the industry to where it is today. But now we need to build on this and provide the framework that will facilitate all of us, concerned with the well being of the horse industry, to achieve further progress. I believe that the funding of the sector has to be placed on a more secure footing and I will be including this aspect in the review process.

The horse and greyhound industries are indigenous Irish industries supporting 21,000 jobs across the country, generating approximately €1.4bn in economic output in the economy annually. These industries produce a very good return on the State’s investment and are a significant net contributor to the exchequer. They tick all the boxes in terms of employment, foreign direct investment and they are the type of export-orientated industries we need.

I believe the amount provided for in the estimates for the Fund in 2012 is appropriate given the current constraints on the public finances. Issues relating to the funding of the Irish Sports Council are a matter for my colleague the Minister for Transport, Tourism and Sport.

24. Deputy Martin Heydon asked the Minister for Agriculture, Food and the Marine his plans to progress the recommendations of Food Harvest 2020; the effects he believes the budget 2012 announcements will have on these targets; and if he will make a statement on the matter. [38927/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): As I mentioned earlier in my reply to Parliamentary Question No. 8, it was my intention that, broadly speaking, the measures announced in Budget 2012 would encourage farming activity, incentivise greater productivity at farm level and so assist the achievement of the growth targets mentioned in Food Harvest 2020.

In relation to Food Harvest 2020, I am personally driving progress on the FH2020 report, and through the efforts of the High Level Implementation Committee (HLIC) , considerable progress has been made in the first year of its implementation. In July, I published ‘Milestones for Success’ which set out the level of action which had been taken on the 215 recommendations in FH2020. It also itemised 54 actions already taken over the past year by my Department and relevant State Agencies on Acting Smart, Thinking Green and Achieving Growth; the key themes of FH2020.

I am continuing to drive implementation of FH2020 through active engagement with state bodies, industry and farm organisations at HLIC meetings and personal interaction with these key stakeholders. In addition, I have set myself and the agencies working with me on this critically important project, a series of 40 tasks to be completed by end July 2012. To make sure that these plans remain on track, the HLIC and myself have agreed quarterly targets which will help monitor progress and I will assess the progress on the September-December 2011 targets at the next HLIC meeting scheduled for end January 2012. Another monitoring mechanism was the decision to set interim milestones for 2013 and 2105 and all parties are committed to meeting these milestones.

25. Deputy Dara Murphy asked the Minister for Agriculture, Food and the Marine his views on the role that agriculture and the agrifood sector can play in Ireland’s economic recovery with particular regard to the Food Harvest 2020 report produced by him; and if he will make a statement on the matter. [38952/11]

44. Deputy Seán Kyne asked the Minister for Agriculture, Food and the Marine the way the agrifood sector can contribute to the country’s economic revival; the effect that changes made in budget 2012 may have on this revival; and if he will make a statement on the matter. [38950/11]

59. Deputy Seán Kyne asked the Minister for Agriculture, Food and the Marine his views on the role that the agri-food sector can play in Ireland’s economic recovery; the effect he believes the announcements in budget 2012 will have on the agri-food sector; and if he will make a statement on the matter. [38949/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): I propose to take Questions Nos. 25, 44 and 59 together.

The agri-food sector is contributing to the country’s economic recovery through its significant role in adding value to the economy and its contribution to the export led recovery. CSO data shows that Ireland’s agri-food exports increased by 11% in 2010, reaching almost €8 billion. This sector is continuing to improve in 2011 with current figures showing a 12% improvement in the first six months of 2011 vis a vis the same period in 2010 and final year projections are of the order of €8.9 billion.

The agri-food sector plays a particularly strong role in encouraging domestic expenditure. Analysis shows that more than 70% of its expenditure is on Irish goods and services. This, allied to its lower level of profit repatriation, means that its contribution to the Irish economy is significantly greater than that of other manufacturing industries.

The Deputy should also be aware of the embedded nature of this sector which according to the Census of Agricultural Production has

An annual turnover of €22billion, which is 20% of industries turnover

Accounts for 18% of Ireland’s total industrial output and

Provides an outlet for produce from Ireland’s 128,000 farms and is the main employment for circa 135,000 people

To ensure the continued development of the sector, I am personally leading the implementation of Food Harvest 2020 which sets out the industry’s strategic vision for the next decade and which contains over 200 recommendations designed to assist the industry achieve its key growth targets. Fuller details on plans to progress this report are available in my answer to Parliamentary Question 38927/11 of today’s date.

It is my view, broadly speaking, that the measures announced in Budget 2012 would encourage farming activity, incentivise greater productivity at farm level and so assist the achievement of the growth targets mentioned in Food Harvest 2020.

26. Deputy Barry Cowen asked the Minister for Agriculture, Food and the Marine the amount of money he has spent on external public relations broken down by area such as photography, publications and so on since March 2011 to date. [39795/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): My Department does not employ external public relations companies and has not for 2011. Public relations advice, where required is provided by my Department’s Press Office. It is not possible to provide costs for this service, as the work is carried out as part of the standard duties of the staff involved.

Table 1

Nature of Service Provided	Payment €
Photography	27,548
Advertising*	269,451
Printing	2,924
Total	299,923

*The vast bulk of the Departments advertising is carried out in the print media. This figure, which has reduced by 42% compared to 2010, includes the publication of statutory notices that are required to comply with various National & EU legislative requirements. Other media such as television & radio are rarely used. Internet media has not been used to date.

Question No. 27 withdrawn.

28. Deputy Willie O’Dea asked the Minister for Agriculture, Food and the Marine the measures he has undertaken to review and reform the management of herring fisheries in Ireland to date. [39828/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Earlier this year I asked the fishing industry and other interested parties to make proposals on the future management arrangements for all Irish herring fisheries. In response to my notification of the review, a number of proposals were received from industry, many offering conflicting views, particularly in regard to the need to ring fence the fisheries. Taking account of the views expressed I am currently examining a number of options for new management arrangements. I plan to make these proposals available to Industry representatives for views shortly, before making a final decision on the management arrangements for the 2012 herring fisheries. Revised arrangements, if any, will be on the basis that they deliver a proper and effective management regime for the stock.

29. Deputy David Stanton asked the Minister for Agriculture, Food and the Marine the way in which Coillte is responsible to him; the interaction he has had with Coillte since taking office; and if he will make a statement on the matter. [38959/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Coillte Teoranta was established as a private commercial company under the Forestry Act, 1988. In accordance with that Act, my consent is required by the company for certain actions. For some of those actions, the approval of the Minister for Finance, or now, following the enactment of the Ministers and Secretaries (Amendment) Act 2011, the approval of the Minister for Public Expenditure and Reform, is also required. Coillte, as a state body, is also subject to the Code of Practice for the Governance of State Bodies. This Code, which was updated in 2009, sets out the governance framework agreed by the Government for the internal management, and the internal and external reporting relationships, of commercial and non-commercial state bodies. The Code specifies inter alia the reports that the Chairperson and the Company must provide to me, and my Department, on a range of issues.

In relation to my interaction with Coillte since taking office, I have met with the Chairman, the Chief Executive and other representatives of the company on a number of occasions since March and there is ongoing contact and correspondence between officials in my Department and Coillte as and when required.

30. Deputy Heather Humphreys asked the Minister for Agriculture, Food and the Marine the initiatives he is undertaking to open new markets for Irish food abroad; and if he will make a statement on the matter. [38956/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): I am of the belief that it is always beneficial to have a wide range of outlets available for our high quality agricultural produce. To this end my Department engages with Bord Bia and the Department of Foreign Affairs, in consultation with the industry, to secure access to more third country outlets.

In relation to meat, we reached agreements in 2011 with the authorities in Turkey, Egypt and Singapore which allow for the export of beef. My Department also hosted visits by official delegations from the Philippines (beef access), Australia (pork access), China (pork and beef access) and Korea (pork access) as part of our efforts to gain access for Irish meats to these rapidly growing markets. There are ongoing discussions at EU level with the Russian Federation which, it is hoped, will allow for the export of sheepmeat from EU counties (including Ireland), in the future, and we have been pressing at EU level for an adjustment in the US TSE rule which would permit Irish and EU beef and sheepmeat to be exported to the US. Longer term targets for Irish meat access include China for beef and lamb, and Japan for beef. Other targeted markets include access for Irish beef and lamb to the North African and Middle East regions. My Department is engaging actively with the authorities in these countries in order to secure access for these products. There is a strong demand for meat globally. My Department remains focused, in consultation with the industry, on ensuring that Irish exporters are able to take full advantage of the opportunities that arise. At present 20% of all Irish pork is exported outside of the EU and most Irish exports of beef and lamb go direct to other EU countries.

On the dairy side, Ireland already has access to dairy markets worldwide. Nonetheless I am working with industry to raise the profile of the Irish dairy sector, and the Irish agrifood sector generally in emerging markets. In this regard I visited Algeria in September to meet my counterpart, Minister Rachid Benaissa and to open a new Irish Dairy Board Office and Packing Centre in what is already a significant, but expanding market for Irish dairy products, and I am confident that my continuing work in this area will ultimately pay dividends for the dairy and other sectors.

Once my Department has obtained access to markets for any agrifood products, the extent to which those markets are exploited by Irish agrifood businesses is determined by the usual commercial considerations, including demand, supply and price. My Department and I remain committed to working with industry, through Bord Bia and with the assistance of the international network of Irish Embassies, to raise the profile of Ireland and the Irish agrifood sector, and to build the kind of confidence in our production and control systems that forms the foundation of successful international trade, so that Irish agrifood businesses can continue to develop a strong international profile and increase exports in traditional and emerging markets.

In terms of the scoping and development of new markets, Bord Bia implements a comprehensive market development programme to acquire new customers for Irish food and drink companies in priority markets. Through a network of 10 overseas offices, Bord Bia undertakes in excess of a thousand buyer presentations/meetings per year. In addition the Bord Bia Marketing Fellowship with 26 experienced graduates undertaking 106 commercial assignments in 12 overseas markets from the US to South Korea delivers increased business and market insight for about 80 exporting companies. In February of next year, Bord Bia’s Marketplace International 2012 will provide a business development platform for 177 Irish food and drink companies to meet with over 300 international buyers and about 100 Irish buyers.

31. Deputy Noel Harrington asked the Minister for Agriculture, Food and the Marine the response he has received from the European Commission in relation to the recently published discard atlas; and if he will make a statement on the matter. [38943/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): On 8 November, I launched an Irish “discard” atlas, which is a detailed compendium of discards by the Irish Fleet on a stock by stock and area by area basis. The Atlas, compiled and produced by the Marine Institute and Bord Iascaigh Mhara with the support of Irish Industry, outlines a range of potential measures to help reduce discarding. I sent a copy of the Atlas to Commissioner Damanaki.

This is the first publication of its kind and places Ireland firmly to the fore in the debate on eliminating discards. The atlas will inform the process to achieve real change and a significant reduction in discarding within the new Common Fisheries Policy, identifies where action needs to be taken, and the potential measures that could be adopted.

The information provided in the Atlas is based on information that is collected by and available to all Member States. I asked Commissioner Damanaki, in the interests of tackling the discards problem appropriately, to encourage other Member States to make this type of information available in a similar format to inform the current discussions on this critical element of the new CFP.

Commissioner Damanaki has responded and has identified the Atlas as an excellent initiative in finding an effective solution to the wasteful practice of discarding. She advised that she sees the Atlas as a positive step and considers that it would be useful for other Member States to have such information collated. She also welcomes the inclusion of a number of potential measures in the publication to reduce discarding and expresses her commitment to working to eliminate discards under the Reform of the Common Fisheries Policy.

I will continue to work both nationally and in the context of the reform of the CFP to pursue actions that will ensure that the shared objective of all to address the discards problem is giving priority.

32. Deputy Pat Deering asked the Minister for Agriculture, Food and the Marine his plans to consult with the stakeholders in the farming industry here in relation to the negotiations on the reform of the Common Agricultural Policy; and if he will make a statement on the matter. [38944/11]

42. Deputy Frank Feighan asked the Minister for Agriculture, Food and the Marine his views on the reform of the Common Agricultural Policy; and if he will make a statement on the matter. [38931/11]

48. Deputy Pat Deering asked the Minister for Agriculture, Food and the Marine his priorities in the negotiations on the reform of the Common Agricultural Policy; and if he will make a statement on the matter. [38932/11]

55. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine the steps which he is taking to construct an alliance at member state level to support Ireland’s case for reform of the Common Agricultural Policy; and if he will make a statement on the matter. [39014/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): I propose to take Questions Nos. 32, 42, 48 and 55 together.

I would refer colleagues to the statement I made to this House in October last following the launch of the CAP reform proposals. This set out in detail my views on the package and my priorities in the negotiations. To summarise the position, my priorities in these negotiations are:

To ensure that the negotiations on the next EU budget framework deliver a well- resourced CAP to support sustainable food production in the EU.

To retain Ireland’s funding both for direct payments and for rural development in any redistribution of CAP funds between Member States;

To obtain flexibility for Member States in relation to payment models and transition arrangements for distribution of single payment funds to farmers;

To ensure that rural development policy includes appropriate targeted measures to support competitiveness and sustainability; and finally,

To keep CAP processes as simple and as effective as possible and to minimise unnecessary bureaucracy for the farmer and costs for the State.

Turning to the details, first of all on overall funding, the parallel proposal on the multiannual financial framework for the next EU budget, which was presented by the Commission last June, maintains, at least in nominal terms, the current level of CAP funding. This is a reasonable starting point in the negotiations and compares favourably with the pressure for severe cuts to the CAP from certain elements of the Commission and a good number of Member States earlier this year.

As regards the distribution of CAP funds between Member States, the proposal to use a pragmatic basis to redistribute Pillar 1 Direct Income supports between Member States is broadly positive. But I continue to believe that it would be best to use this approach for the distribution of pillar 1 and pillar 2 funds combined. Realistically we cannot agree to an allocation of pillar 1 funds until we see exactly what is proposed for pillar 2.

Another serious concern relates to distribution of Direct Payments within Member States. I have a major problem with the proposal to impose uniform national or regional payment rates. This would cause large transfers in Ireland from the more productive farms to more marginal and lower productivity holdings. I believe that it will also cause difficulties in other Member States. I will be looking for the maximum flexibility for Member States to design the payment model that suits their own conditions, provided of course that this does not interfere with competition. This is a key point for me. The transition process proposed by the Commission is also much too abrupt and front loaded. Any transition process to a new payment model, whatever that model may be, should be gradual and back-loaded to avoid sudden adjustments and to give farmers time to adjust.

The proposal to use 2014 as a reference year for establishing new entitlements has generated much comment. I continue to have concerns about the effects this may have on the land market between now and then. My office has outlined these concerns in some detail to the Commission. This is an issue that will need to be clarified and sorted out in the detailed discussions to come.

On a positive note, I am very pleased at the inclusion of the provision on payments to young farmers in pillar 1. It is very important that we support our young farmers and encourage structural change through both the first and second pillars of the CAP. There is also a proposed scheme for small scale farmers who, as an alternative to tiered direct payments, may opt for lump sum payments of between €500 and €1,000. At first sight this seems more geared to the subsistence type holdings found in some of the southern Member States than to the size of holdings we would consider small in Irish terms. For that reason, I am not sure whether there is much of interest for us in this proposal but we will consider it in consultation with the farming organisations and other stakeholders. There are further options for Member States to use part of their national ceilings to support areas of natural handicap and for coupled payments. Overall I believe there is merit in having a series of flexible and voluntary options available to Member States to gear their payments best to their own farming conditions.

I would take issue with the way the Commission is proposing to define an active farmer. I believe this proposed definition may give rise to unnecessary bureaucracy and I will be seeking in the negotiations to have some changes made. The key point in my view is to give Member States sufficient room to define an active farmer in a way suitable to their own conditions. As to the progressive capping foreseen of large payments, the reality is that capping would have very little impact in Ireland. Most of our farms are small family farms and would not come close to the capping threshold proposed.

Turning to Rural Development, I welcome the continuation of the three current objectives and the abolition of axis balance requirement in pillar 2. But I have concerns about the very cumbersome process proposed for co-ordination of priorities and spending between the various EU funds; I will be seeking for it to be streamlined and simplified.

There are some interesting new options in the menu of measures proposed. These include new measures for farm and business development that provide start-up aid for young farmers, small farms and non-agricultural activities. The latter provide considerable scope as they are directed at farmers, farm households and SMEs and Micro Enterprises. The new options to facilitate cooperative projects and to address risk management may also be of interest. Producer groups also feature in the menu of measures available. Support for LEADER activities will also be a part of our next programme. We will examine all of these options carefully. Of course, my over-arching priority is to maintain support for on-farm investment, including appropriate support for afforestation, to assist the restructuring necessary to deliver sustainable intensification of food production and a more competitive primary food production system.

As to market supports, I am pleased that the Commission has proposed retention of intervention at safety-net level and private storage aid, although I have some concerns at the additional discretion proposed to be given to the Commission to activate these measures. The important issue now is to ensure that there are adequate funds available and accessible for these measures.

I also strongly support the proposal to abolish sugar quotas from 2015. There is clearly a problem with the supply of sugar across the EU and I firmly believe that we need to move away from supply limiting measures at the earliest possible opportunity. We need to address the realities of the market and ensure there is security of supply for the food industry and consumers.

These proposals will be subject to detailed examination and discussion in the negotiations that will now take place. In that connection, since I took up office earlier this year I have made it a priority to build up alliances with my counterparts in like-minded Member States in order to garner support for my position on the proposed reform of the CAP. I have had formal bilateral meetings with my German, French, UK, Spanish, Estonian and Danish Ministerial colleagues. I have also taken the opportunity to meet with my Ministerial colleagues from the other Member States and the EU Commission at the EU Council of Agriculture Ministers meetings held each month in Brussels or Luxemburg and also at the Informal Ministerial Councils held in Hungary and Poland. Last month I addressed a meeting of the Agricultural Committee of the European Parliament. Over the coming months I plan to intensify these contacts. I have meetings scheduled tomorrow and Friday in Brussels with my Danish and Finnish colleagues. Early in the new year I will meet again with MEP and I will host a visit to Ireland by the Commissioner for Agriculture and Rural Development. As negotiations develop, I will continue to interact with my Ministerial colleagues and with the Commission and European Parliament. My intention is to maintain and develop alliances with like-minded Member States to secure the best possible outcome for Ireland.

Of course, my consultations are not confined to my EU counterparts. An initial consultation process was launched with stakeholders by my Department in July 2009 to obtain views on what EU agriculture policies would serve Ireland and the EU best in the years to come. In 2010, a Consultative Committee on the CAP was set up by my Department comprising all the major farming and agriculture related representative organisations as well as a number of academics. The Committee have met on several occasions, most recently in November, and also participated in the Stakeholder event organised by my Department during the visit of Commissioner Ciolos last year. The most recent meeting provided an opportunity for all the stakeholder organisations to give their initial reactions to the formal Commission proposals. My officials and I will continue to consult with farming organisations and stakeholders as the negotiations progress.

33. Deputy David Stanton asked the Minister for Agriculture, Food and the Marine the way in which he is supporting agricultural based renewable energy; and if he will make a statement on the matter. [38960/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): As the Deputy is aware, energy policy, including renewable energy policy, is a matter in the first instance for my colleague the Minister for Communications, Energy and Natural Resources, Pat Rabbitte, T.D. Officials from my Department work closely with their counterparts in Minister Rabbitte’s Department and also with other Agencies and Bodies such as the Sustainable Energy Authority of Ireland and Teagasc in developing renewable energy policy in the Agriculture Sector.

The Bioenergy Scheme, which has been in place since 2007, has provided grant-aid of up to 50% of establishment costs of the energy crops willow and miscanthus. Up to the end of 2011, over 3,000 hectares of energy crops have been established under the Bioenergy Scheme. On Monday 5th December 2011, as part of the announcement of the expenditure estimates for my Department in 2012, I announced the re-opening of the Bioenergy Scheme for 2012. The Scheme in 2012 has the potential to support the establishment of a further 1,400 hectares of energy crops in 2012.

My Department has also provided funding for research under the Stimulus fund 2007-2013 to three projects related to anaerobic digestion. These are:

(a) Developing grass for sustainable renewable energy generation and value added products — led by Dr Padraig O’Kiely (Teagasc Grange) and in collaboration with QUB and UCC.

(b) Energy generation option for pig manure and sustainable disposal of residue — led by Dr Peadar Lawlor (Teagasc Moorepark) and in collaboration with NUIG and AFBI Northern Ireland.

(c) Evaluating Irish grassland as a source for bioenergy: Environmental Impacts and long term sustainability — led by Dr. Tomara Hochstrasser (UCD) and in collaboration with Teagasc Oakpark and AFBI Northern Ireland.

A Scheme of Investment Aid for Demonstration of On-Farm Waste Processing Facilities was introduced by my Department in June 2006 under the aegis of the 2000-2006 National Development Plan, with funding of €4m as provided for in that Plan. In 2007, grant-aid was approved under the Scheme for the development of ten on-farm anaerobic digestion facilities. The grant-aid is payable only on completion of the work concerned and one grant of €400,000 has been drawn down to-date.

The Deputy may also be aware of the recent decision by DG Competition to grant State Aid clearance for proposed Renewable Energy Feed-in Tariffs (REFIT) for Biomass Technologies. I am confident that the introduction of these tariffs will help to underpin the further development of renewable energy initiatives in the Agriculture Sector.

34. Deputy Nicky McFadden asked the Minister for Agriculture, Food and the Marine the measures being taken by him in regard to reform and cost saving measures to ensure cost savings and efficiencies; and if he will make a statement on the matter. [38954/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): My Department has been engaged in an ongoing programme of reorganisation and structural reform at all levels. In the context of the 2012 Budget negotiations, my priorities have been to continue the process and to achieve further efficiencies and improved service delivery both within the Department and in the State bodies under its remit. I am determined to ensure that all schemes and services are delivered as efficiently and effectively as possible and the Comprehensive Expenditure Review, which was completed earlier in the year, was a rigorous exercise involving a thorough review and analysis of all elements of expenditure.

In addition to managing reduced funding for programmes in 2012, there will be a further reduction of €12m in the Administrative Budget for the Department. This saving will be implemented through a combination of reduced staffing levels, changes in work practices and the manner in which schemes are administered, reductions in disease levels resulting from more intensive and targeted controls, the advanced use of information technology and a programme of internal reviews of business units, including a root and branch review of the local office network, which has led to improved business processes and greater operational efficiency.

The programme of reorganisation and reform, both in my Department and agencies, has yielded and will deliver the following savings:

a 25% reduction in Department staffing levels from 4,800 in 2005 to less than 3,600 currently,

a 22% reduction, or about €68m, in the Administrative Budget for the Department in 2012 by comparison with 2008;

reductions in funding and staffing levels for State bodies,

the Local Office Re-organisation Programme will reduce the number of local offices from 58 to 16, when fully completed in 2012;

expansion of the shared services programme for agencies and other Government Departments.

I intend to keep the situation under close scrutiny to ensure the further improvements are introduced and that value for money is provided in the administration of the Department.

35. Deputy Marcella Corcoran Kennedy asked the Minister for Agriculture, Food and the Marine his views on the potential of Ireland’s beef industry; the support he is providing to them with regard to the Food Harvest 2020 targets; and if he will make a statement on the matter. [38941/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Beef production is the predominant activity on Irish farms with more than 100,000 holdings involved in supplying the raw material to an industry that employs almost 8,000 people and exported product worth more than €1.5 billion in 2010. The prospects for 2011 are positive with the value of beef exports expected to grow by 9% to upwards of €1.7 billion for the year.

The Food Harvest 2020 report offers a vision for the long-term development of all the main food industry sectors. In relation to the beef sector specifically, an industry-led Activation Group reported earlier this year.

The report suggests that there is market demand to support growth in the suckler and dairy herds. Maximising beef output potential from the national herd is contingent on a number of factors, not least on the price of beef on EU and international markets. In light of current and future market developments, it is essential that a co-ordinated approach is taken by stakeholders to improve efficiency at farm and processing level, to breed better animals, maintain high standards of quality and food safety and maximise the market potential of Ireland’s unique natural advantages.

Already we are seeing results, for example, in the areas of innovation and collaboration. Bord Bia has secured accreditation for its beef carbon footprint model. This is now part of the Beef and Lamb Quality Assurance Scheme making it the first such scheme to include environmental criteria. I see this as an important practical step towards the goal of creating an umbrella Brand Ireland identity as recommended in the 2020 strategy. On the production side, Teagasc is working with the processing industry on research projects investigating dairy beef production and on optimal young bull production and my Department is continuing to make a substantial financial contribution to the Irish Cattle Breeding Federation to support its efforts to improve breed quality.

In 2012 my Department will continue to operate the Suckler Cow Welfare scheme which has been allocated €25 million of national funds and is an important measure in the continuing development of high quality animals in the national herd. Also I have secured funding of €5 million for beef discussion groups. These discussion groups, the establishment of which was called for by the industry led Activation group, will allow farmers in the livestock and beef sectors to follow best practice in the implementation of the latest development in cattle breeding and grassland management.

International Trade

Insofar as our international trade in beef is concerned, I have been extremely active in developing relationships in new and expanding markets in order to build the kind of confidence in Irish production and control systems that provide a platform for long-term trading relationships in the future. As part of that effort, I hosted a visit from the Chinese Vice-Minister for Agriculture earlier this year, and signed a mutual co-operation agreement in the agri-food sector. In addition, my Department has engaged with a range of third countries, including Australia, the Philippines, South Korea, China, Turkey, Egypt, Algeria and others, with a view to opening new markets and expanding the presence of Irish beef in existing markets. And of course Bord Bia continues, through its marketing and promotional activities, and through its quality assurance schemes, to consolidate the position of the Irish agri-food on the domestic market and to expand its presence in EU and third country markets.

36. Deputy Colm Keaveney asked the Minister for Agriculture, Food and the Marine the reforms being discussed under the Common Agricultural Policy negotiations that will affect farmers in the west of Ireland who work on less favourable land; and if he will make a statement on the matter. [38934/11]

57. Deputy Colm Keaveney asked the Minister for Agriculture, Food and the Marine if he will provide an update on the issue of Common Agricultural Policy reform measures and their implications for designated disadvantaged areas; and if he will make a statement on the matter. [38933/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): I propose to take Questions Nos. 36 and 57 together.

Firstly I would like to emphasise that it is my intention in the ongoing negotiations on the reform of the Common Agricultural Policy to ensure that the reform delivers the environment in which Irish agriculture and food production can develop and prosper based on viable family farms in all parts of Ireland.

The EU Commission proposals, published on 12 October 2011, contain texts of seven draft Regulations covering the three main aspects of the CAP (direct income supports, market supports and rural development) the financing, control and inspection arrangements and transitional arrangements for 2013.

Provision is made in the Direct Payments proposal for Member States to allocate up to 5% of National Envelope to farmers situated in Areas of Natural Constraints. These are areas that we know as disadvantaged or less favoured areas. I welcome the flexibility provided by this option in the proposals. We will have to consider, in association with all of the stakeholders, whether to take up this option.

The Rural Development proposal contains the Commission’s latest proposals for the delineation of Less Favoured Areas (now renamed areas of natural constraint). I am pleased that the Commission has finally accepted “soil moisture balance” as one of the bio-physical criteria to be used to determine inclusion in such areas. This was a point pressed repeatedly by Ireland with a view to ensuring that proper account was taken of the cool damp climate in Ireland and its effect of trafficability of the soil. I still have some issues with the latest Commission proposals notably concerning the percentage of land that must be affected by one of the bio-physical criteria to qualify for inclusion. I will be taking this matter up with the Commission in the course of the negotiations.

37. Deputy Tom Barry asked the Minister for Agriculture, Food and the Marine the current projections for Irish agri-exports in view of the fact that his annual report showed them to have increased 11% from 2009; the effect the recent budget announcements will have on exports; and if he will make a statement on the matter. [38929/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): The projections for 2011 in relation to Irish agri-food exports have remained good all year, although there was a decrease in some sub-sectors in the third quarter. According to the Irish Exporters Association we can expect exports for 2011 to be in the region of 12% higher in 2011 than they were in 2010. It is estimated that food and drink exports will total €8.9bn in 2011. If these figures are borne out in the final results in January it will be another excellent result for the sector.

The Food Harvest 2020 strategy outlines the plans for increased output by the sector over the coming decade. Most of Ireland’s food production is exported and therefore the changes introduced in budget 2012 will also impact on our exports. The taxation measures announced in Budget 2012 reflect this Government’s commitment to the agri-food industry and in particular to the expansion planned in the Food Harvest 2020 strategy. The measures announced have been designed specifically to:

Incentivise farm partnerships and greater productivity at farm level

Help agri-food businesses innovate and export.

38. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine the evidence there is to show that badgers spread TB; the research that has been carried out in relation to same; and if he will make a statement on the matter. [39054/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): There is considerable evidence that badgers are responsible for the spread of bovine TB and that their removal results in a reduction in the incidence of the disease in cattle. I would refer the Deputy to a paper entitled Mycobacterium bovis Infection in the Eurasian Badger (Meles Meles): the Disease, Pathogenesis, Epidemiology and Control which was published in Science Direct earlier this year. This paper summarises the evidence on the role of badgers in the spread of TB in cattle both in Ireland and the UK and concludes that “the ability to eradicate badgers is severely constrained while infection continues to be spread from badgers”.

In Ireland, the first major research project took place in East Offaly between 1989 and 1995. Badgers were removed from an area of 528 square kilometres and the change in the incidence of TB was compared with data from a reference area surrounding the removal area. The risk of herd breakdowns in the removal area was significantly reduced, the risk of a TB breakdown in a herd being 14 times higher in the control area compared with the removal area. The next significant study was conducted from 1997 to 2002 in four different areas of the country. This study, known as the Four Area Project, involved the intensive and proactive removal of badgers in four “removal” areas and “reactive” culling of badgers in matched reference areas. The published results of this project demonstrated that there was a significant reduction in TB levels in cattle following the removal of badgers. In particular, the total number of herd restrictions in the removal areas for the study period was almost 60% lower than in the pre study period. In addition, in County Laois, targeted badger removal between 1989 and 2005 was shown to have a significant beneficial impact on the risk of future breakdowns (Olea-Popelka et al 2009).

In view of this research, the Bovine TB eradication programme implemented by my Department contains a comprehensive wildlife strategy in order to limit the spread of TB from badgers to cattle. My Department is satisfied that this strategy has contributed to a reduction in the incidence of TB over the past number of years and, accordingly, to a significant reduction in the cost of the programme to the taxpayer. Herd incidence has fallen from 7.5% in 2000 to 4.6% last year and reactor numbers will be under 20,000 this year, the lowest recorded since the commencement of the programme in the 1950s. The enhancement of the badger culling strategy has been the only significant change in my Department’s approach to TB eradication over the past 10 years.

As I have indicated previously, it is my intention is to replace culling with a vaccination programme as soon as on-going research demonstrates that this is a practicable proposition.

39. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine the effect that budget 2012 will have on young farmers; and if he will make a statement on the matter. [38938/11]

47. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine the effect that budget 2012 will have on those looking to get involved in farming, particularly young farmers; and if he will make a statement on the matter. [38939/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): I propose to take Questions Nos. 39 and 47 together.

Incentivise farm partnerships and greater productivity at farm level

The main measures in the Budget which will benefit the agri-food sector are as follows:

Incentive for Farm Partnerships

I am supporting farm partnerships because I believe that collaboration through partnership can improve farm structures generally, facilitating farms to operate more efficiently, increasing scale on farms, and bringing more innovative and energetic young prospective farmers into farming. More farming partnerships are required to increase productivity and meet the Food Harvest 2020 targets.

I am confident that providing an additional incentive to farm partnership formation will encourage farmers to consider more closely the benefits of farm partnerships to their farming business and in providing a better work-life balance.

Stamp duty reduction

I am particularly pleased that Budget 2012 reduces the stamp duty rate on agricultural land from 6% to 2%, with immediate effect. In addition, half the rate (1%) will be applicable on transfers to close relatives until the end of 2014.

Capital Gains Tax retirement relief

Budget 2012 has restructured the retirement relief available on Capital Gains Tax in order to incentivise the earlier transfer of farm assets to the next generation, and to encourage the sale of land by those farmers with no successors. As of 1st January 2014, for those farmers aged 66 and over, an upper limit of €3m will be introduced on family transfers, compared to an unlimited amount currently. On non-family transfers, the current upper limit of €750,000 will be reduced to €500,000. Applying the new limits from 1st January 2014 allows farmers already aged 66 and over to plan the orderly transfer of assets in advance of that date.

40. Deputy Áine Collins asked the Minister for Agriculture, Food and the Marine his views that Ireland could be over quota in the new 2011-2012 milk quota; and if he will make a statement on the matter. [38935/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): I am of course concerned that Ireland could be over quota in the 2011/2012 milk quota year. Favourable market and weather conditions during the 2010/2011 milk quota year contributed to a dramatic increase in milk production, which resulted in a remarkable turnaround from a position where the country was 10 per cent under quota at the end of the 2009/2010 milk quota year. These favourable conditions have continued through the current quota year, and although supplies have begun to fall back in recent weeks, estimated delivery figures for the period up to the end of November show that the country is 0.41 per cent over quota.

In such circumstances, it is appropriate to again remind all dairy farmers of the need to carefully plan their production activities and to pay close attention to the limitations imposed by the quota regime if they are to avoid potentially very damaging super levy fines. This will be particularly important as the sector moves into the spring calving period in early 2012 and milk production resumes in earnest. Even allowing for a further increase of one per cent in the national quota since 1 April 2011, a repeat of the delivery pattern seen in spring 2011 could put the country in serious danger of going over quota. It is therefore incumbent upon every milk producer to continue to exercise the necessary caution and to seek advice from, for example, Teagasc on the most sensible approach to be taken in managing their enterprises as they enter a crucial phase of the preparations for quota abolition in 2015.

For my part, I intend to continue my efforts to raise the issue of the soft landing at every opportunity with Member State colleagues and with the Commission. However, the latter has resisted attempts to revisit this matter, and there is, in any event, no guarantee that a majority of Member States will support calls for a more flexible milk quota regime. Therefore Irish dairy farmers must continue to operate on the assumption that no further changes will be made to the quota arrangements agreed in the context of the CAP Health Check.

41. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine the steps he is taking to support agricultural development in less favoured areas; and if he will make a statement on the matter. [39015/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): The Disadvantaged Areas Scheme is a very important Scheme for the country, as the total area designated as disadvantaged is almost 75% of Ireland’s total land area. From an economic perspective, the Scheme is particularly significant, contributing to the support of Irish farm families, whose ability to farm is restricted by the physical environment and, in particular, the impact of the prevailing wet cold climatic conditions. The Disadvantaged Areas Scheme, as implemented in Ireland, compares very favourably with the aid paid to farmers in other Member States both from the point of view of the rate of aid payable and the number of farmers covered. In fact, less than 50% of all farmers situated in Less Favoured Areas across the EU do not benefit from aid under this Scheme.

While it was necessary to reduce the total funding for the Scheme as part of the recent budgetary process, I am pleased that there will be no change in either the rates of aid payable or the total maximum areas payable under the Disadvantaged Areas Scheme.

I am introducing targeted reform in the Disadvantaged Areas Payments, which will be achieved through reform of the stocking density, retention period and other elements of the scheme. The changes being introduced will favour active farmers, who are farming exclusively in Less Favoured Areas and are subject to clearance by the European Commission.

The Suckler Cow Welfare Scheme is also an important measure for many farmers situated in Less Favoured Areas. This fully nationally funded Scheme will continue in place and I have provided the necessary funding to meet all payments due in 2012 at the current rates of €40 per cow. Over the next few days, my Department will pay over €12.3 million to 21,000 farmers, the vast majority of which are situated in Less Favoured Areas.

Question No. 42 answered with Question No. 32.

43. Deputy Peadar Tóibín asked the Minister for Agriculture, Food and the Marine in view of the role of the agrifood sector as a major employer and exporter, if he will support the development of an all Ireland approach to developing jobs in this sector. [35943/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): In the context of my engagement at North-South Ministerial Council I have made it clear that the implementation of the all-island animal health and welfare strategy is a necessary prerequisite to greater co-operation on the development of the agrifood sector. Progress is being made in this respect.

The primary responsibility for the fostering of jobs on an all-island basis lies with my colleague the Minister for Enterprise, Jobs and Innovation, Deputy Richard Bruton, in the context of the North-South Ministerial Council and the North South Body Intertrade Ireland which comes under his auspices. This is the business development body, whose mission is to promote North-South trade by building business capability, jobs and competitiveness.

Question No. 44 answered with Question No. 25.

45. Deputy Joe McHugh asked the Minister for Agriculture, Food and the Marine the effect that budget 2012 will have on the potential of the Irish fishing industry; and if he will make a statement on the matter. [38958/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Under Budget 2012 €10 million has been allocated for development of the seafood industry and €6 million for the Fishery Harbours and Coastal Infrastructure Capital Development Programme. This compares to €10.6 million for seafood development and €10.1 million for the Fishery Harbours and Coastal Infrastructure Capital Development Programme in 2011. In the present economic situation and in view of the cutbacks being experienced elsewhere, this must be considered a vote of confidence by Government in the potential of the seafood industry to contribute to economic growth and job creation.

Following an Interim Evaluation of the EU co-funded Seafood Development Operational Programme during 2011, my Department and BIM are reviewing the content of that Programme and the investment priorities identified within it, to prioritise investment in those areas that can best contribute to growth and jobs and the targets identified in Food Harvest 2020. The revised Programme will be subject to approval by a Monitoring Committee of stakeholders and by the European Commission. I am satisfied that the funding available in 2012 will be sufficient to support the continued development of the seafood sector.

The Fishery Harbour and Coastal Infrastructure Development Capital Programme provides funding for works at the six State-owned Fishery Harbour Centres as well as other Local Authority owned harbours and landing places around the coast.

This programme enhances harbour infrastructure, provides much needed employment in coastal communities during the construction phase and establishes a platform to create and support sustained employment in the fishing, aquaculture and marine leisure sectors.

46. Deputy Dessie Ellis asked the Minister for Agriculture, Food and the Marine his plans to reduce forestry premiums in budget 2012; and if he will make a statement on the matter. [39057/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): The Government will provide almost €112 million in funding for the forestry programme in 2012. The total amount of funding for forestry is the amount announced in the 2012 Estimates augmented by a carryover of Departmental savings of €27 million from 2011. This allocation reflects the Government’s continued commitment to a sector which is important both in creating and maintaining employment in rural areas, while also playing a significant climate change role.

The allocation will enable the State to pay for new planting at a level similar to this year of almost 7,000 hectares. In addition it will pay for annual premiums to existing forestry owners. Approximately 16,000 recipients, the majority of whom are farmers, will receive almost €75 million in premium payments in 2012. It is envisaged that the annual premium run will take place in April 2012. I am pleased to confirm that there will be no change in relation to the rate of payment of forestry premiums, which continue at current levels.

Question No. 47 answered with Question No. 39.

Question No. 48 answered with Question No. 32.

49. Deputy Andrew Doyle asked the Minister for Agriculture, Food and the Marine the reason behind any changes made in budget 2012 including his key priorities for the agrifood sector; and if he will make a statement on the matter. [38925/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): The taxation measures announced in Budget 2012 reflect this Government’s priorities for the agri-food industry and in particular the expansion planned in the Food Harvest 2020 strategy. The measures announced have been designed specifically to:

Incentivise farm partnerships and greater productivity at farm level

The main measures in the Budget which will benefit the agri-food sector are as follows:

Incentive for Farm Partnerships

Stamp duty reduction

Capital Gains Tax retirement relief

Food Harvest 2020 measures

A range of measures which will support the Food Harvest 2020 objectives are also being implemented that will contribute to jobs and growth in the agri-food sector.

I am re-opening the Targeted Agricultural Modernisation Schemes (TAMS) which had been suspended earlier in the year because of the uncertain budgetary situation. I am providing funding in 2012 to enable all of the schemes to re-open — Poultry and Pig Welfare, Dairy Equipment, Sheep Handling and Rainwater Harvesting Schemes, as well as the Bio-energy scheme. In addition to providing an incentive for farmers to invest in their enterprises and secure their futures, these schemes will make a worthwhile contribution to job creation and to the maintenance of existing jobs in rural areas.

In forestry, I am anxious to deliver on the Government’s commitment to afforestation and to support a sector which contributes to job creation and to the maintenance of jobs in rural areas and which has a vital climate change role. Overall Expenditure for Forestry will be higher than the published figures and will amount to €111.76 million when the published estimate of €84.86m is boosted by a further €27m by way of carry-over of savings from 2011. This increased forestry funding of €112 million will allow afforestation to continue at roughly 7,000 hectares per annum as well as providing for the building of forest roads. There is no change in relation to the rate of payment of forestry premia, which continue at current levels.

50. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine his plans to challenge the proposals made by the European Commission which will adversely affect Ireland’s fishing industry; if he will seek to stop the proposed ban on cod fishing in the Irish Sea at the Council’s December meeting; and if he will make a statement on the matter. [40017/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Scientific advice shows that many stocks where Ireland has a quota are not in a healthy biological state and therefore are in need of urgent remedial action. I have consistently stated that wherever the available scientific advice indicates a need for a cut in TAC levels I will accept this measure. The Sustainability Impact Assessment on TACs and quotas for 2012, which I presented to the Dail on 23rd November, agrees with the need to cut the quotas for some of the stocks in 2012, though the level of these cuts is queried in some cases, while in others there is clear scientific data to suggest that a cut is unwarranted. In other cases, the available evidence is that an increase in the TAC can be justified.

There is a high cost from a social and economic perspective when quota cuts are proposed and we have to be satisfied that in every case these cuts are justifiable. Fishing ports and whole communities all around our coast are dependent on fisheries for their very survival. But it is equally important to ensure the long term sustainability and health of the fishing resource, because without the stocks there would be no fishing industry.

The science on Irish Sea Cod shows that the stock is in a very poor state, though there are some positive signs with recruitment in 2009 above the recent average, the Commission has proposed a zero catch for Cod in 2012. A long term management plan for this stock has been in place since 2008 which if followed would reduce the TAC in 2012 by 25%. I will be supporting the 25% reduction in the Irish Sea Cod TAC at the December Council of Fisheries Ministers being held on December 15th and 16th in Brussels, where the levels of Total Allowable Catch (TAC) and ultimately the quotas for Ireland in 2012 will be determined.

51. Deputy Frank Feighan asked the Minister for Agriculture, Food and the Marine the reforms that are being undertaken by agencies under his remit over the past year; and if he will make a statement on the matter. [38937/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Across the five non-commercial State Agencies that fall under the remit of my Department a wide range of initiatives are in progress aimed at improving organisational structures and securing greater levels of efficiency and cost effectiveness in programme delivery.

All of the agencies have reduced staff numbers in recent years and under the Employment Control Framework, further staff reductions will continue up to 2015. In addition, efficiencies in procurement arrangements, in project management, in the delivery of ICT services, in office rental costs, in on — line service delivery and in internal restructuring of business areas, have all contributed to lower running costs. There is a strong commitment to reform in each of the agencies and the delivery of these reforms is being monitored as part of the mechanisms for the review under the Public Service (Croke Park) Agreement 2010-2014.

52. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine his views that it is unreasonable to cut the total allowable catch by 25% in areas in which data from the International Council for the Exploration of the Seas are not available; his further views that these measures will adversely affect the Irish fishing industry; and if he will make a statement on the matter. [40018/11]

I have consistently stated that wherever the scientific advice indicates a need for a cut in TAC levels I will accept this measure. The Sustainability Impact Assessment on TACs and quotas for 2012, which I presented to the Dail on 23rd November, agrees with the need to cut the quotas for some of the stocks in 2012, though the level of these cuts is queried in some cases, while in others there is clear scientific data to suggest that a cut is unwarranted. In other cases, the available evidence is that an increase in the TAC can be justified.

There is a high cost from a social and economic perspective when quota cuts are proposed and we have to be satisfied that in every case these cuts are justifiable. Fishing ports and whole communities all around our coast are dependent on fisheries for their very survival. Our fishing fleet depends totally on having healthy and long term sustainable stocks to remain viable and productive. In order to balance all three pillars it will be necessary to take hard decisions on some stocks that will result in reduced fishing opportunities.

However, we need to use all sources of verifiable science when determining our decisions on fishing levels to ensure that the right balance is struck between the health of the fishing resource and the wider ecosystem with the economic and social realities of our network of rural coastal communities. I will be making every effort to ensure, at the Fisheries Council this week, we deliver on these objectives.

53. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine the reason there is a delay for farmers awaiting payments under the agri-environment options scheme; and if he will make a statement on the matter. [39055/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): Under EU Regulations governing the Agri-environment Options Scheme (AEOS) and other area-based payment schemes, a comprehensive administrative check, including cross-checks with the Land Parcel Identification System, must be completed before any payment can issue. This administration check has been completed and payments under AEOS in respect of 2010 commenced in September. My Department is now dealing with applications on which queries and issues arose in the course of the administrative checking process and further payments are issuing on an ongoing basis as queries are resolved. The administrative checks have also been carried out in respect of 2011 and those payments will commence shortly.

I continue to give high priority to the processing and payment of AEOS applications and to the elimination of all unnecessary delays.

54. Deputy Dessie Ellis asked the Minister for Agriculture, Food and the Marine his plans for the restoration of the beet industry in Ireland; and if he will make a statement on the matter. [39056/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): In 2006, a temporary scheme for the restructuring of the sugar industry, was introduced by the EU Commission with the aim of reducing EU sugar production in order to comply with WTO and other international obligations. The scheme provided an incentive for sugar processors to renounce sugar quota and dismantle the associated sugar processing plant and it provided compensation for affected stakeholders. Greencore, the sole Irish sugar processor and holder of the Irish sugar quota, decided to avail of this scheme and accordingly the company renounced the quota and dismantled the last remaining sugar factory at Mallow in compliance with the conditions of the scheme.

There is no mechanism under the present EU Regulations which are in force until 30 September 2015 which would allow for the re-instatement of the sugar quota for the growing of sugar beet in Ireland for the production of sugar. I have strongly supported the abolition of sugar quotas from September 2015 as part of the CAP reform discussions in the Council of Ministers.

In this regard, I have also met with two separate groups who have conducted feasibility studies, over the past several months, into the possibility of establishing a sugar/bioethanol facility. At both meetings I stated that any venture to develop a combined sugar/bioethanol production facility would have to be a commercial proposition, financed in total by investors and interested parties and make sound economic sense in order to be viable.

Question No. 55 answered with Question No. 32.

56. Deputy Andrew Doyle asked the Minister for Agriculture, Food and the Marine the reason behind the changes made in budget 2012 including his main priorities for the agricultural sector; and if he will make a statement on the matter. [38926/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): The taxation measures announced in Budget 2012 reflect this Government’s commitment to the agri-food industry and in particular to the expansion planned in the Food Harvest 2020 strategy. The measures announced have been designed specifically to:

Incentivise farm partnerships and greater productivity at farm level

The main measures in the Budget which will benefit the agri-food were designed to encourage collaboration between farmers and to facilitate the timely transfer of agriculture land to more active and younger farmers.

The new stock relief incentive for farm partnerships will improve farm structures generally, facilitating farms to operate more efficiently, increasing scale on farms, and bringing more innovative and energetic young prospective farmers into farming. More farming partnerships are required to increase productivity and meet the Food Harvest 2020 targets.

The reduction in stamp duty will substantially reduce the stamp duty payable on transfers of farm land by gift or by sale. It should stimulate a stagnant land market — currently only 0.5% of total agricultural land is offered for sale annually — and ensure that land transfers to more active producers. It will also promote inter-generational transfer, as the cost of lifetime transfer to transferees who do not qualify for the young trained farmer stamp duty relief has reduced considerably.

The changes in Capital Gains Tax will incentivise the earlier transfer of farm assets to the next generation, and encourage the sale of land by those farmers with no successors. It is important to remember that these new measures do not mean that a farmer has to cease farming altogether beyond the age of 66, but it allows them to plan for a phased gradual transfer of assets to the next generation.

All of the measures outlined above are designed to increase productivity and help the sector in attaining the challenging targets outlined in the Food Harvest 2020 strategy.

Question No. 57 answered with Question No. 36.

58. Deputy Noel Harrington asked the Minister for Agriculture, Food and the Marine if he will provide an update on the reform of the Common Fisheries Policy; and if he will make a statement on the matter. [38942/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): The Common Fisheries Policy, CFP, is the fisheries policy of the European Union which was first put in place in 1983 and has been subject to reviews every 10 years, the most recent was in 2002 and the next reform is scheduled for adoption in the latter half of 2012.

The CFP is scheduled for adoption in the latter half of 2012. This is an ambitious target and there is a strong possibility that the adoption of the new policy will be delayed and fall into 2013 during the Irish Presidency of the EU.

A reformed CFP is a critical policy issue for Ireland as it will shape the strategic blueprint for the European fishing industry for the next decade. The CFP impacts on the social, economic and environmental pillars of the wider seafood industry and the proposals will hold both opportunities and risks for Ireland.

My overarching goal for the new CFP is for a sustainable, profitable and self reliant industry that protects and enhances the social and economic fabric of rural coastal communities dependent on the seafood sector, while balancing these objectives with the need to deliver a sustainable and fisheries landscape for future generations. I am pursuing initiatives that will deliver and sustain jobs in coastal communities rather than those that promote the concentration of wealth and delivery of excessive profits for a few big international businesses.

I broadly support the general thrust of the proposals put forward by the Commission in their proposal of 13th July on such key issues as enhanced conservation, rebuilding fish stocks, reducing discarding of fish, introducing more selective fishing gears to allow small fish and unwanted by catches to escape and the use of multi annual plans as a primary tool to rebuild and manage fish stocks.

However I have differing views on some key points from an Irish perspective. Subject to further negotiation on important details in respect of those issues I would expect that by the conclusion of the negotiations, I would hope to be in a position to support these important elements of the Reform proposals. Within the package there are specific issues that are of critical importance to Ireland, which I will address in more detail.

I have serious concerns about the implications of the Commission's intention to impose the mandatory introduction of individually transferable concessions (quotas). Under this system, fish quotas would be allocated as tradeable commodities to private individuals and companies for at least 15 years and those individuals would be permitted to sell on the quotas.

There is serious concern in Ireland that under the current set of proposals, which the Commission has published, there is a real risk that the economic benefit from our quotas will be increasingly lost to Ireland. Despite the Commissions assurances, at this point, I can see no safeguards that could be built into the proposals which would prevent this happening.

In relation to discards, I fully support the objectives on addressing the unacceptable and wasteful practice of discarding as set in this proposal. The Commission proposal involves the introduction of a blanket ban on discarding of fish which would be applied incrementally over the period 2014 to 2016.

Ireland has been to the forefront in the debate on discards and as recently as Tuesday the 8th November published an Irish “atlas of discards” which details the level of discards by the Irish fleet and proposes potential solutions.

I believe that we need radical action to bring an end to this wasteful practice which is as abhorrent to fishermen as it is to the general public. In my opinion, the Commission proposal for a ban is too simplistic and is more likely to result in the concealment of the practice than a change in the behaviour. I am absolutely committed to addressing the problem in a practical and progressive manner working directly with fishermen and scientists.

The retention of the Hague Preferences is a key issue for Ireland as it gives Irish Fishermen a safety net of additional quotas when stock levels go below a certain point. In the Commission proposal, the Hague Preferences are recognised in the same manner as heretofore. Ireland sought their full integration into the CFP to avoid the current situation where there application each year is a matter for decision by the EU Fisheries Council. I will continue to pursue this approach but I am fully aware that we may face opposition for their inclusion, in any form, from those Member States who lose quota when they are invoked

In terms of the process, there is a long road to take before the reform of the CFP is finalised, many Member States will have conflicting agendas on certain issues. Commissioner Damanaki has visited Ireland and I had a good opportunity to set out Ireland’s priorities and to give her a full understanding of the situation of the sector in Ireland and the likely impacts of her proposals, both positive and negative.

I have been actively building alliances with like-minded colleagues in Europe. I met with my French Counterpart Minister Le Maire on the 30th September and issued a joint communiqué which included a commitment to work closely on sustainability measures including discards, regionalisation and importantly on our opposition to the proposals on ITQs as they currently stand.

I also met my British and Scottish counterparts at the November Fisheries Council where we had a broad discussion on fisheries related issues including the reform of the CFP.

In addition I am working very closely with the Irish industry to ensure an orchestrated and focussed message on Ireland’s priorities for the reformed CFP is brought to as many fora as possible in Brussels.

I intend to continue this process and will take every opportunity to explain Ireland’s priorities and seek support for our stance, in order to strengthen our negotiating position and deliver the best possible outcome for Ireland.

Question No. 59 answered with Question No. 25.

60. Deputy John Paul Phelan asked the Minister for Agriculture, Food and the Marine the support that is being given to active farmers in vulnerable areas following budget 2012 announcements; and if he will make a statement on the matter. [38945/11]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney): My Department is always fully supportive of all active farmers, particularly those in vulnerable areas.

The main measures in the Budget which will benefit the agri-food sector are as follows:

a stock relief incentive to encourage Farm Partnerships;

reduction in the stamp duty rate on agricultural land from 6% to 2%, so as to stimulate land sales and land transfers;

restructuring of Capital Gains Tax retirement relief so as to encourage inter-generational transfer.

Suckler Cow Welfare Scheme

Disadvantaged Areas

There will be no changes in either the rates or the eligible areas qualifying for a disadvantaged area payment. I am introducing targeted reform in the Disadvantaged Areas Payments, which will be achieved through reform of the stocking density, retention period and other elements of the scheme. The changes being introduced will favour active farmers and are subject to clearance by the European Commission.

Beef discussion groups

Farm Partnerships

In common with farmers all around the country, active farmers in vulnerable areas will be able to avail of the new stock relief incentive aimed at encouraging farm partnerships. Under this initiative, an enhanced 50% stock relief will be available for all registered farm partnerships, and a 100% stock relief will be available for certain young trained farmers forming such partnerships. I recently published a useful Reference Paper on farm partnerships on my Department’s website, which highlighted the benefits that such arrangements can bring to farm families. The economic benefits include increased economies of scale, shared capital investment, removal of duplicate costs, and risk sharing. The partnership model encourages farmers to share best farming and business management practice, thereby increasing their skill set and providing opportunities to diversify into alternative enterprises. Collaborating and farming in partnership can also have social benefits through reducing isolation, improving the work-life balance and also facilitating succession planning. Farmers can avail of these benefits while also helping to secure the future of their family farms, including, and perhaps most particularly, in vulnerable areas.

61. Deputy Tom Barry asked the Minister for Agriculture, Food and the Marine the effects budget 2012 will have on the agri-food industry; and if he will make a statement on the matter. [38930/11]

Incentivise farm partnerships and greater productivity at farm level